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Costco Wholesale Corp  (NAS:COST) Debt-to-EBITDA : 1.01 As of Feb. 2019

Debt-to-EBITDA measures a company's ability to pay off its debt.

Costco Wholesale Corp's Current Portion of Long-Term Debt for the quarter that ended in Feb. 2019 was USD 1,698 Mil. Costco Wholesale Corp's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2019 was USD 4,794 Mil. Costco Wholesale Corp's annualized EBITDA for the quarter that ended in Feb. 2019 was USD 6,404 Mil. Costco Wholesale Corp's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2019 was 1.01.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

NAS:COST' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.37   Max: 1.26
Current: 1.04

0.37
1.26

During the past 13 years, the highest Debt-to-EBITDA Ratio of Costco Wholesale Corp was 1.26. The lowest was 0.37. And the median was 1.05.

NAS:COST's Debt-to-EBITDA is ranked higher than
74% of the 291 Companies
in the Global industry.

( Industry Median: 2.18 vs. NAS:COST: 1.04 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Costco Wholesale Corp Annual Data

Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.17 1.26 1.03 1.19 1.07

Costco Wholesale Corp Quarterly Data

May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.19 1.13 0.84 1.24 1.01

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Costco Wholesale Corp Distribution

* The bar in red indicates where Costco Wholesale Corp's Debt-to-EBITDA falls into.



Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Costco Wholesale Corp's Debt-to-EBITDA for the fiscal year that ended in Aug. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 6487) / 6038
=1.07

Costco Wholesale Corp's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2019 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Current Portion of Long-Term Debt + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1698 + 4794) / 6404
=1.01

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Feb. 2019) EBITDA data.


Explanation

In the calculation of Debt-to-EBITDA, we use the total of Current Portion of Long-Term Debt and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


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